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Tatra banka

4.12.2016 23:24

Interest options and strategies

 

Floating interest rate with limitation against
increase (CAP)offers clients a possibility
to determine the maximum interest rate level.

Options

Options

  • Utilisation possible with loans
  • Only compensatory payment between the reference and agreed fixed rate is made
  • Required accounting as with derivative
  • Client pays the bank so-called premium for option

Floating interest rate with limitation against decrease (FLOOR) gives client a possibility to set a minimum interest rate level for a long-term investment.

Interest COLLAR

Interest COLLAR

  • Cost-free solution for ensuring the minimum and maximum interest rate
  • Possibility to participate in the eventual interest rate decrease (with loan)

Click here for detailed description of financial tools and related risks.